An expansionary fiscal policy quizlet
Fiscal Policy Practice Test Questions
If Fiscal Policy is trying to promote stability and economic growth through tax cuts, what type of policy is Fiscal policy using? Expansionary Fiscal Policy. Restrictive Fiscal Policy. Easy Money Policy. Tight Money Policy. If a nation currently has a budget deficit, their …
[DOC File]AP ECONOMICS CHAPTER 19 STUDY GUIDE
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A) expansionary fiscal policy and a tight money policy. B) contractionary fiscal policy and a tight money policy. C) expansionary fiscal policy and an easy money policy. D) contractionary fiscal policy and an easy money policy. 28. Crowding-out results from: A) an increase in the supply of money and a decrease in the velocity of money.
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A) expansionary fiscal policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) contractionary monetary policy. Answer: B. 16) According to the ʺsimpleʺ Keynesian view, the aggregate supply curve is. A) vertical until it reaches full capacity and then becomes horizontal. B) downward sloping over all levels of output.
[DOC File]Unit 3 Retake / Practice Test AP Macroeconomics Krugman ...
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____ 29. An expansionary fiscal policy: A. typically decreases a government budget deficit or increases a government budget surplus. B. may include decreases in government spending. C. may include increases in the money supply. D. may include decreases in taxes. E. may include a reduction in transfer payments. Figure 20-6: Fiscal Policy II ____ 30.
FISCAL POLICY WORKSHEET - OnCourse Systems
Expansionary fiscal policy can be achieved with an decrease in (government spending, taxes) _____, an increase in _____, or a combination of the two. If fiscal policy is to have a countercyclical effect, if probably will be necessary for the Federal government to incur a budget (surplus, deficit) _____ during a recession and a budget ...
[DOC File]Chapter 7: Economic Growth, Business Cycles, Unemployment ...
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Expansionary fiscal policy will tend to reduce unemployment and increase interest rates. But to offset the effect of higher income on increasing the trade deficit, an expansionary monetary policy will have to be implemented to depress the dollar and spur exports to lower the trade deficit. Reducing employment and the interest rate, this works ...
[DOC File]Multiple choice questions
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c. use fiscal policy to influence GDP. d. loan money to most of LDC commercial banks. 4. _____ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods. a. Incomes policy. b. Moral hazard. c. Wagner's law. d. Fiscal policy. 5.
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Jun 01, 2009 · was associated with rising output, perhaps due to expansionary fiscal policy. c. caused output to fall, but by less than the typical estimate of the sacrifice ratio suggested. d. None of the above is correct. ____ 40. Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and ...
[DOC File]CHAPTER 17: TEST BANK
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expansionary fiscal policy. contractionary fiscal policy. Capital flight occurs when funds in LDCs are: used to purchase luxury goods. used to invest in factories and equipment. used to invest in foreign countries. saved at home rather than in banks. Economic reform in less developed countries typically includes:
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